Last week, we reviewed 2024’s standout markets. This week, we’re looking ahead to 2025 and the overseas property markets that have our attention right now.
Where is smart overseas property investment heading this new year? Here’s a sneak peek at the markets that we’re scouting first in 2025.
Crete, Greece
Greece has 6,000 islands, but we’ve set our sights on the biggest of them all: Crete.
Crete has a low cost of living, historical charm, and sunny weather with beautiful Mediterranean beaches. It’s so appealing from a lifestyle perspective that we included it once again in our selection of the world’s best places to retire.
Crete also has affordable property. In the past few years, Greece has exploded in popularity with foreign homebuyers, which has driven up property prices across the country. In fact, home prices have increased by double-digit sums over the past 10 consecutive quarters.
But Crete remains a bargain, both by regional and international standards. Chania, on the island’s northwest, attracts the most foreign homebuyers and is the epicenter of tourism. Yet even here you can buy a cozy apartment for about 80,000 euros. For a villa with three bedrooms and a pool, the average spend is about 200,000 euros.
Crete can make an excellent choice for year-round living or a buy-to-let investment, and about 60% of homeowners rent out their properties. Rental yields are strong thanks to high tourism numbers, and upkeep costs are low.
Greece is appealing because of its friendly policies for investors and retirees. It offers one of the few remaining golden visa programs in Europe, where investing as little as 250,000 euros can qualify you for residency.
Retirees and investors can also take advantage of preferential tax rates, like the Non-Dom Tax Regime (whereby a flat tax of 7% is applied to pension or passive income from abroad for 15 years).
Mazatlán, Mexico
Mazatlán is a picturesque city on Mexico’s Pacific Coast that’s also named among the world’s best places to retire in our 2025 Overseas Retirement Index.
Mazatlán has broad lifestyle appeal. It boasts a large, culturally vibrant colonial center with endless dining options as well as cafés, galleries, theaters, and shops. It also has its own beach—an impressive 11-mile stretch with soft sands and swimmable waters with a long boardwalk.
Mazatlán stands out compared to other Mexican resorts because it’s a real city of about 500,000 people. It has a big expat community made up of many Canadians and Americans, so it’s familiar, and you can easily get by on English. However, it’s not overwhelmed by the presence of foreigners. Mazatlán is authentic.
Compared to other resorts like Puerto Vallarta and Playa del Carmen, property is a bargain in Mazatlán. Whether you choose to live on the beach or in the historic center, you could buy a home from $200,000.
Vacation rentals and long-term investments are good plays for property investors in Mazatlán. It draws strong tourism numbers with its beautiful beaches, colonial charm, and reputation for safety, creating strong rental demand.
We’ve seen exceptional appreciation of property values since Mazatlán first came onto our radar, and we think this trend will continue over the coming years. Now could be the next best time to make an investment in Mazatlán…
Valencia And Estepona, Spain
Spain has long been a favorite market among international property investors. In 2025, we plan to put boots on the ground in Valencia and Estepona specifically.
Valencia is the most livable city in the country, with a Goldilocks kind of appeal. It’s not too big (so it doesn’t suffer from the overcrowding of Madrid and Barcelona), and it’s not too small (so it’s still well-connected and cosmopolitan, with highly developed infrastructure).
Valencia is just the right size, plus it has Mediterranean beaches available from the city center, the cost of living is low, people are friendly, and it has excellent public transportation and medical facilities. For these reasons and more, it’s also included among our best picks for retirement in 2025.
The city is on the rise with foreign homebuyers. One third of all buyers in Q1 of 2024 were foreign nationals (British, Belgian, and Dutch). Sales prices increased by over 10% and rental prices by almost 20% during that period.
Valencia still has room to grow, however. For investors seeking value, it continues to be more affordable than Madrid and Barcelona. The Valencian Community’s price per square meter is 2,140 euros (compared to 4,575 euros in Madrid and about 4,200 euros in Barcelona).
The city offers diverse investment opportunities, from historic city center apartments to modern developments in emerging neighborhoods. We’ll report on these in the coming weeks…
We’ll also head to Estepona, a prime destination for overseas property investors on Spain’s famous Costa del Sol. It’s basked in traditional Andalusian charm, with whitewashed historic buildings, a palm tree-lined promenade, beaches, and plenty of sunshine.
Because of high demand, Estepona’s real estate prices have risen considerably to 3,556 euros per square meter. Property options include luxury beachfront homes, upscale developments, historic apartments, traditional townhouses, and more, with options to cater to various preferences and budgets.
The West Coast, Northern Cyprus
If you’ve been reading Overseas Property Alert for a while, you already know that Northern Cyprus is one of our top profit markets—a standout for both capital appreciation and rental returns.
We first recommended investment property in Kyrenia, on Northern Cyprus’s north coast. Development proliferated and property values increased sharply…
Next, we recommended Iskele, on the east coast, which followed Kyrenia’s example. When we first recommended Iskele, you could buy quality real estate for as little as $60,000. In the few years since, those same units have appreciated by over 116%.
This year, we’re focused on a new area of Northern Cyprus: the West Coast. It has the last stretch of undeveloped coastline in the region, as well as stunning coastline and breathtaking mountains.
The Path of Progress is barreling in the West Coast’s direction, and developers (including our contacts on the ground) have already snapped up tracts of land. Plans to develop this area include more than just residential developments. It will have marina resorts, wellness facilities, a hospital, beach amenities, and a shopping center… all the makings of a high-value community.
These coming amenities will drive up real estate prices… but we have an opportunity to stake a claim now, while prices for beach property are so low, they’re considered pocket money.
Through our local contacts, ocean-view studio apartments are available from as little as $110k.
Northern Cyprus is also interesting from a lifestyle and investment perspective because a property purchase—of any value—makes you eligible for residency.
Medellín, Colombia
Medellín is not a new market for us—far from it. Lief Simon and Kathleen Peddicord have been in the Medellín real estate market going on 15 years.
However, we’re returning to Medellín in 2025 to rediscover its potential to deliver profits from property investment and an above-average standard of living.
Medellín is rising in popularity with tourists, digital nomads, and expats. They’re drawn by the low cost of everything, the vibrant cultural entertainment options, the improved reputation for safety, and the overall appeal of this attractive city.
The weak Colombian peso versus the U.S. dollar makes high-quality property a steal for U.S. investors. Plus, Colombia offers a golden visa program with low investment thresholds (about $104,000) to qualify for residency.
Our trusted local contacts recently put us on to exciting new opportunities in the City of Eternal Spring…
Last week, we touched on an opportunity in El Poblado, Medellín’s most popular neighborhood, where units start at $120k (at the latest available pricing). Net returns are projected at 10% to 12% using conservative estimates.
New opportunities from our contacts that offer outsized profit potential may come up in the coming months. Watch this space…
Panama is a perennial investment favorite, and it will continue to be on our list of strong investment markets for the foreseeable future. Panama has a robust economy, a stable government, and a favorable tax regime. It’s the ultimate safe haven market for overseas property investors.
Diverse lifestyle options are available across the country, from cosmopolitan Panama City, the Hub of the Americas and a center of global trade, to the tranquil surroundings in Boquete, the most popular place among U.S. and Canadian retirees.
Panama should be a cornerstone in any diversified investment portfolio. Investing in real estate here (as little as $200,000) can make you eligible for residency in Panama. Stay tuned for new opportunities in this old favorite coming to you in 2025…
To smooth travels and successful property buys,
Sophia Titley
Editor, Overseas Property Alert